15. Naidu and Shekar are partners sharing profits and losses in the ratio of 3:2. Their balance
Goodwill created and written off
sheet as on 31 March 2020 was as follows:
Amount
Liabilities
Assets
Amount
Bills payable
40,000
Cash
20.000
Creditors
60,000
Cash at Bank
80,000
Outstand expenses
40,000
Debtors
1,20,000
Capitals;
Stock
80,000
Ram
3,60,000
3,00,000
8,00,000
Machinery
Buildings
Rahim
2,00,000
3,00,000
8,00.000
Answers
Answer:
started business with Cash Rs.22000 and Stock of Rs.3000. His initial contribution to the capital will be Rs.25000 (Rs.22000 + Rs. 3000).
Calculation at the end of the year will be :
Capital introduced Rs.25000
Add; Profit during the year Rs. 6000
----------------
Rs.31000
Less: Drawings (Goods) Rs.3500
-----------------
Capital at the end of the year Rs.27500
-----------------
Therefore, Gross Assets of the business as on 31st Dec 2014 will be Rs.27500